Which Principle Underlies the Interaction of Individual Choices

question 21

Multiple Choice

Which principle underlies the interaction of individual choices?

• A) Choices are necessary because resources are scarce.
• B) There are gains from trade.
• C) "How much" is a decision at the margin
• D) People usually respond to incentives,exploiting opportunities to make themselves better off.

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Definitions:

Instincts

Innate, fixed patterns of behavior in response to specific stimuli.

Purposive

Having or serving a purpose; intentional or goal-oriented in nature.

Supernormal Stimulus

An exaggerated artificial stimulus that elicits a stronger response than the natural stimulus for which an organism is programmed.

Early Instinct Theories

Theories proposing that behaviors are primarily driven by innate instincts, focusing on the innate, biological determinants of behavior.